HomeMy WebLinkAbout~Master - 2017/18 CDBG Program - borrowing $5,000 from Affordable Housing Fund for purchase of 3305 Morningside Street RESOLUTION NO. 18-219
RESOLUTION APPROVING THE BORROWING OF FUNDS FOR PURCHASE OF
3305 MORNINGSIDE STREET AS PART OF THE 2017/18 CDBG PROGRAM
FOR THE CITY OF AMES
WHEREAS, as part of the CDBG 2017/18 Action Plan Neighborhood Sustainability
Program,the Acquisition/Reuse program component seeks to acquire properties to either rehabilitate
or demolish/remove for reuse for affordable housing; and,
WHEREAS, of particular interest are the purchase of single-family properties that were
rentals to convert them back into home ownership, and sell to low-income,first-time home buyers,
utilizing the down payment funds in the Home Buyer Assistance Program; and,
WHEREAS, due to the time lost in the process of seeking to work with a developer for
redevelopment of 321 State Avenue, staff needed to switch to the implementation of the
Acquisition/Reuse activity in order to meet the required timely expenditure of CDBG funds by
May 2, 2018; and,
WHEREAS, staff has identified four properties within the NRSA that met the criteria and
goals; and,
WHEREAS, of the four, three owners were interested in selling their properties; and,
WHEREAS, staff has secured purpose agreement with two of the property owners for
241 Village Drive and 3305 Morningside Street; and,
WHEREAS, the total cost to acquire the two properties is approximately$275,000; and,
WHEREAS, the 2017/18 Acquisition/Reuse program budget allocated$170,000 for use in
the purpose of homes; and,
WHEREAS, the property at 241 Village Drive has been purchased, but a shortfall of
approximately$5,000 will exist inhibiting the purchase of a second property at 3305 Morningside
Street; and,
WHEREAS, City staff has conferred with HUD staff and found they can use non-CDBG
funds to cover the gap and/or earmark funds from the FY 2018/19 CDBG allocation to repay itself
for purchasing properties.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
the loan of$5,000 to the CDBG program for purchase of the property at 3305 Morningside Street
is hereby approved, and funds will be earmarked from the FY 2018/19 CDBG allocation to
reimburse the fund.
ADOPTED THIS 24 h day of April, 2018.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Gartin
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Martin,Nelson
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 24t'day of April, 2018.